(Source: Genesee & Wyoming press release, August 11, 2011)
GREENWICH, Conn. — Genesee & Wyoming Inc. (GWI) today reported traffic volumes for July 2011.
GWI’s traffic in July 2011 was 85,199 carloads, an increase of 11,952 carloads, or 16.3 percent, compared with July 2010.
Excluding 7,283 carloads from the FreightLink Acquisition (1), which closed December 1, 2010, same-railroad traffic in July 2011 increased 4,669 carloads, or 6.4 percent, compared with July 2010. GWI’s other commodity group traffic grew 1,752 carloads primarily due to increased overhead coal shipments in GWI’s New York/Ohio/Pennsylvania Region. Farm & food products grew 1,749 carloads primarily due to increased shipments of corn products in GWI’s Illinois Region and increased shipments of grain in GWI’s Australia Region. Minerals & stone traffic grew 1,439 carloads primarily due to increased shipments of stone and salt in GWI’s New York/Ohio/Pennsylvania Region. All remaining traffic decreased by a net 271 carloads.
Carload Reporting for Huron Central Railway
The carloads in this press release include 1,463 carloads in July 2011 and 1,322 carloads in July 2010 from the Huron Central Railway (HCRY). On June 15, 2009, GWI announced its intent to discontinue operations of HCRY. After negotiations with certain customers and government entities, HCRY entered into an interim agreement to continue operations. Because of the nature of the temporary agreement, during this interim period, which lasted from August 15, 2009 through December 31, 2010, GWI did not include HCRY’s carloads in its monthly carloading press release. On January 1, 2011, HCRY started operating under a new agreement with certain customers and GWI resumed including HCRY traffic in its monthly carloading press release. To facilitate comparison to the prior year in this press release, GWI has included HCRY carloads from July 2010 which were not previously included in the press release for the same periods in 2010.
Carload Reporting After FreightLink Acquisition
Since acquiring FreightLink, GWI is reporting two new commodity groups, Intermodal and Metallic Ores. Intermodal units included in freight revenues are reported consistent with the Association of American Railroads (AAR) convention. Previously, Intermodal traffic was reported on a carload basis and included in the Other commodity group. The change in reporting intermodal traffic on a unit basis rather than on a carload basis increases previously reported July 2010 volume by an additional 367 carloads. Metallic Ores traffic had previously been included in three commodity groups: Coal, Coke & Ores, Minerals & Stone and Metals commodity groups.
Historically, GWI has found that carload information may be indicative of freight revenues on its railroads, but may not be indicative of total revenues, operating expenses, operating income or net income. Car movements related to railcar switching, including activities at port terminals, are excluded from our carload information as the resulting revenues are classified as non-freight.
GWI owns and operates short line and regional freight railroads in the United States, Canada, Australia, the Netherlands and Belgium. In addition, we operate the Tarcoola to Darwin rail line, which links the Port of Darwin with the Australian interstate rail network in South Australia. Operations currently include 63 railroads organized in nine regions, with approximately 7,400 miles of owned and leased track and approximately 1,400 additional miles under track access arrangements. We provide rail service at 17 ports in North America and Europe and perform contract coal loading and railcar switching for industrial customers.
(1) On December 1, 2010 GWI purchased certain assets from FreightLink Pty Ltd (receivers and managers appointed) (FL), Asia Pacific Transport Pty Ltd (receivers and managers appointed) (APT) and the other APT joint venture sellers (together with FL and APT, “FreightLink Acquisition” or “FreightLink”).